FEASIBILITY REPORT

FOR 250 LIT.(MODIFIED) BLOW MOULDED CONTAINERS - 720 drums / day

Based on offer dtd 1/9/2008 for plant capacity @720 drums/day
base capital cost:
JMV -210 Blow moulding machine with TMC 128 Point Parison
Programmer. (capacity - 720 Drums /day) 11,970,000
Post Cooling arrangement 300,000
Air Compressor, 30 Hp., screw type 430,000
1000 Ltr. Receiver tank 57,500
Plastic Scrap Grinder, 24"/20 Hp. 504,000
Cooling Tower, 80 Tons. 120,000
Chilling Plant, 15 Tons. 625,000
Ratio Loader (in place of Hopper Loader) 350,000
Article Moulds, 220/235/250 litre. 1,800,000
Water Pump 7.5 HP 22,500
Circular Saw Cutter. 47,250
Cooling accessories 65,000
Leak tesing machine 305,000
Drop testing machine 125,000
Bung Mould (Injection) - 4 cavity 125,000
O' ring Mould (Injection) 55,000
Printing machine (hand operated) 60,000
hOT Crane (10 MT Capacity 500,000
Drum Color Mixer 100 Kg/ 50 Kg X 2 262,500
DG Set 500 KVA 2,500,000
Total = 20,223,750
Plus Excise Duty, @10.30% = 2,083,046
Total = 22,306,796
Plus CST @ 1% (W.E.F 1ST APR-09) 223,068
Total Capital Investment = (A)

Pre Production Charges (including Installation charges and

miscellaneous expenses) = (B)
Total Project Cost

B Estimation of Operating Expenses

B.1 Cost Of Raw Material
Basis - Drum Production capacity/day 720

Plant Ops days/month (in days) 28

Unit Weight of 250 Ltr Capacity Drum (in Kg) 9.0

Landed Cost of PET Resin 77

Total Quantity of Raw Material (in Kg) 181,440

Total Raw Material Cost

(720 pieces /day, 9.0 Kg/drum, 15 days production, Rs. 77/kg resin) C
Less Modvat 10.30%

B.2 Cost of Utilities

 Electricity Bill / month. 628,992

Labour Charges / month. 75,000

Maintenance Charges / month. 25,000

Drum Delivery charges (Prodn site to consmption site) 352,800

Process Wastage @1% 139,709

Monthly Expenses on utilities D

B.3 Depreciation @10% on Capital Investment = E (PER MONTH)

B.4 Interest @12% on Capital Investment = F (PER MONTH)

Total Monthly Production Expenses = G

Cost of Production of One Drum

Outside Purchase from Times Techno

Basic cost 693
Processing Charges 130
Excise Duty @10.3% 85
Sales Tax NA
Freight 22

Net Saving per drum

Monthly Realisation based on Production of 8250 drums for captive

consumption (H)

Payback Period (in Months)

NOTE :
* All the figures are rupees if otherwise not stated.
* All the figures are approximate values and we are not liable for the same.
* All the calcutations are monthly basis.
720 drums / day
rums/day

Incl. spares for B/M machine

22,529,864

2,40,000
22,529,864

20,160 drums in 28 days

Captive Consumption 8250 Drums per month, (Resin

8250X9=74250 Kg) captive consumption
13,970,880
 Specific Electricity Consumption is @0.8 KWH/kg resin
processed, Electricity Rate @20 hrs @Rs.3.2 KWH, 4
Hr @Rs.10 KWH

Foreman/Operator - 1@Rs. 30000 pm, 3 helper/shift

@5000 pm, 3 shift ops of 8 hrs
Lump sum estimate
3500/- trip from Bajpur for 200 drum, (720/day X 28
days)/200X3500 = 352800/-

Process Wastage due to power fluctuation @2% of

Raw Material consumed for captive consumption will be
(74250 X 1% = 742.5 X Rs. 60/kg = Rs. 44550/-
1,221,501

187,749

281,623

15,661,753

777

No ST against exchange of Form-H for export

930

153

1,262,250

18
 FEASIBILITY REPORT
FOR 250 LIT.(MODIFIED) BLOW MOULDED CONTAINERS - 550 Drums / Day
(Based on Discussion dtd 5/12/2008)
capital cost:
JMV -210 Blow moulding machine.
(Capacity-550 drums/day) 10,000,000
Post Cooling arrangement 500,000
Air Compressor, 30 Hp. 457,000
1000 Ltr. Receiver tank 57,500
Scrap Grinder, 24"/20 Hp. 375,000
Cooling Tower, 80 Tons. 115,000
Chilling Plant, 15 Tons. 750,000
Ratio Loader (in place of Hopper Loader) 350,000
Article Moulds, 220/235/250 litre. 1,800,000
Water Pump 7.5 HP 20,000
Circular Saw Cutter. 60,000
Cooling accessories 60,000
Leak tesing machine 350,000
Drop testing machine 125,000
Bung Mould (Injection) 110,000
O' ring Mould (Injection) 45,000
Printing machine (hand operated) 45,000
hOT Crane (10 MT Capacity 500,000
DG Set 500 KVA 2,500,000
Total = 18,219,500
Plus Excise Duty, @10.3% = 1,876,609
Total = 20,096,109
Plus CST @ 1% (W.E.F 1ST APR-09) 200,961
Total Capital Investment = (A) 20,297,070

Pre Production Charges (including

Installation charges and miscellaneous (B) 2,40,000
expenses) = Total Project Cost 20,297,070

B Estimation of Operating Expenses

B.1 Cost Of Raw Material
Basis - Drum Production capacity/day 550

Plant Ops days/month (in days) 28

Unit Weight of 250 Ltr Capacity Drum (in Kg) 9.0

Landed Cost of PET Resin as on 1st Jan-11 77

Total Quantity of Raw Material (in Kg) 138,600

Total Raw Material Cost

(550 pieces /day, 9.0 Kg/drum, 15 days
production, Rs. 57/kg resin) C 10,672,200
Less Modvat 10.3%

B.2 Cost of Utilities

Electricity Bill / month. 480,480
 Labour Charges / month. 75,000

Maintenance Charges / month. 25,000

Drum Delivery charges (Prodn site to consmption sit 269,500

Process Wastage @1% 106,722

Monthly Expenses on utilities D 956,702

B.3 Depreciation @10% on Capital Investment = E (PER MONTH) 169,142

B.4 Interest @12% on Capital Investment = F (PER MONTH) 253,713

Total Monthly Production Expenses = G 12,051,757

Cost of Production of One Drum 783

Outside Purchase from Times Techno

Basic cost 693
Processing Charges 130
Excise Duty @10.3% 85
Sales Tax @1% NA
Freight 22
930

Net Saving per drum 147

Monthly Realisation based on Plant

operation to produce 8250 drums for
captive consumption only (H) 1,212,750

Payback Period (in Months) 17

NOTE :
* All the figures are rupees if otherwise not stated.
* All the figures are approximate values and we are not liable for the same.
* All the calcutations are monthly basis.
 15,400 drums per month

captive requirement 8250 Drums per month, (resin

8250X9=74250 Kg for captive consumption

Specific Electricity Consumption is @0.8 KWH/kg resin

processed, Electricity Rate @20 hrs @Rs.3.2 KWH, 4
Hr @Rs.10 KWH
Foreman/Operator - 1@Rs. 30000 pm, 3 helper/shift
@5000 pm, 3 shift ops of 8 hrs

Lump sum estimate

3500/- trip from Bajpur for 200 drum, (550/day X 15
days)/200X3500 = 143500/-
Process Wastage due to power fluctuation @1% of
Raw Material consumed

No ST against exchange of Form-H for export